Glossary

A group of customers that share one or more similar characteristics, such as geography, demographics, service needs or behaviors.

A strategically located facility designed to serve a particular market or region, positioned to replenish customer inventories and minimize transport costs.

Symbols used to identify a shipment or parts of a shipment, usually placed on the outside of the packaging. The most common type is the barcode.

Key relationships that are strategic in nature. They can provide a competitive advantage for and barrier of entry to e-marketplaces.

The process of delivering wide-market goods and services that are modified to satisfy a specific customer need.

A document created for shipping companies by their carriers, acts as a receipt of transfer, title document, carriage contract, & summarizes the shipment contents.

One of the key elements that comprises the total supply chain management costs. Includes related costs of purchasing, transporting, and storing goods needed.

The percentage of local raw material in the end product. The sum of the localized raw material weights divided by the weight of the finished product.

A computer-based purchasing and inventory management system designed to determine the optimal timing and quantities of materials to purchase.

A document that details safety information about a hazardous material, including the ingredients, handling procedures, first aid procedures and precautions.

The physical movement and storage of products and materials between procurement and shipping; includes receiving, inspecting, sorting, packaging, etc.

Managing the movement and storage of materials and products from procurement through production; includes sourcing, acquition, handling, storage, etc.

The materials management function that is responsible for ensuring that the materials supplied are timed to match the materials demanded.

Where the reporting relationships are set up as a matrix - a grid - instead of the traditional vertical hierarchy and employees may report to two or more managers.

A pre-established limit to the number of items that can be ordered at one time.

The mathematical average of a given set of values.

A unit of measurement used in water transportation rate making and equivalent to forty cubic feet.

The middle number in a sorted list of numbers, the value separating the higher half from the lower half of a data set.

Combining multiple shipments from suppliers and to go directly to a buyer, bypassing the seller.

An agreement that unites two existing companies into one new company. Often used to expand operations, consolidate market positions, or acquire technologies.

In EDI, the exchange of data organized in segments. Typically, it is associated with a common business transaction, such as a purchase order or shipping notice.

1,000 kilograms, or approximately 2,204.6 pounds.

Work performance indicators for the results achieved in an activity, process, or organizational unit. The measures enable periodic comparison and benchmarking.

An intermodal shipment that is moved from a foreign country to the U.S. by water and then across the U.S. by railroad to an interior, non-port city, or vice versa.

An allowance, based upon distance, that railroads give to shippers using private railcars to help offset the cost of operating and maintaining the private railcars.